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RJO's Haberkorn: Gold Traders Waiting For Lower Prices To Resume Buying

Kitco News

Comex gold traders appear to be waiting for lower prices to add bullish trades, says Bob Haberkorn, senior commodities broker with RJO Futures. He points out that the metal has posted limited gains so far Friday despite a number of factors that should be supportive – the weak data on U.S. retail sales, a softer U.S. dollar and another missile test by North Korea. “Technically, it’s coming out of an overbought position,” he says. Still, he continues, gold may have to ease some more to draw renewed interest. “It’s primed to trade higher…but traders are reluctant to add [positions]. That tells me traders are waiting for lower prices to add positions.” As of 9:26 a.m. EDT, Comex December gold was up 50 cents to $1,329.80 an ounce.

By Allen Sykora of Kitco News; asykora@kitco.com

 

FXTM: Gold Becomes ‘Battleground’ For Bulls, Bears

Friday September 15, 2017 09:44

Gold has been a “battleground for bulls and bears” this week, with chaotic price action, says Lukman Otunuga, research analyst at FXTM. “Bulls found support in the form of geopolitical tensions, dollar weakness and fading rate-hike expectations, which kept prices above $1,315,” the analyst says. “Sellers were inspired by reports of Republicans releasing their tax-reform framework later this month, which boosted the dollar. Thursday’s positive U.S. CPI [consumer price index] report compounded the initial downside, as expectations over higher U.S. rates increased.” The winner of this “tough tug-of-war” may well be determined by where prices conclude this week, Otunuga says. “A weekly close below $1,315 signals the end of the bullish trend on the daily charts, with the next target being $1,300,” the analyst says. “In an alternative scenario, a weekly close above $1,340 should open the gates towards $1,350 and higher.” As of 9:38 a.m. EDT, spot gold was down $4.80 to $1,324.20 an ounce.

By Allen Sykora of Kitco News; asykora@kitco.com

 

Commerzbank: Higher Prices Dent India’s Aug. Gold Demand

Friday September 15, 2017 09:44

Indian gold demand during August apparently cooled from previous months due to rising prices, says Commerzbank. Analysts cite data from the country’s Ministry of Finance showing that India imported 41.2 tonnes of gold in August. “Although this was nearly twice as much as last August, it was still the lowest figure so far this year,” Commerzbank says. “Potential buyers have clearly been put off by the sharply rising gold price – gold in Indian rupees soared by 11% from early July to early September. Gold consumers in India are as a rule very price-sensitive. If gold prices do not fall, the usual recovery of Indian gold demand in the autumn is likely to prove less pronounced this year.”

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